PHL's 2nd richest man Lucio Tan puts all businesses under Tanduay Holdings

The country’s second richest man Lucio Tan is consolidating all his businesses – alcohol, cigarettes, property, banking and airlines – under a single entity listed on the Philippine Stock Exchange.

 

In a disclosure to the PSE, Tanduay Holdings Inc. said it would serve as the holding company for Lucio Tan’s diverse business interests under the new name LT Group Inc.

 

This latest move by the country’s tycoon would consolidate under the LT Group Asia Brewery Inc., Fortune Tobacco Corp., Eton Properties Philippines, Philippine Airlines Inc., Air Philippines Corp. (PAL), Philippine National Bank (PNB), and Allied Banking Corp.

 

Son Michael Tan will head the holding firm which aims to lend “synergy” in the Tan family’s business interests.

 

Tanduay Holdings said it would spend P5 billion for the consolidation.

 

“… [T]he enlarged portfolio will provide the corporation with significant opportunities for synergies and business growth, including but not limited to synergies in marketing and distribution, enhanced flexibility in funding, as well as improved financial profile…” Tanduay said in its disclosure.

 

The synergy would also enhance shareholder value, Tanduay Holdings noted.

The Tanduay Holdings board of directors gave the LT Group to acquire shares in these companies:

Tanduay Holdings will buy 90 percent equity in Asia Brewery – the maker of Colt 45, Manila Beer, Coors, and Tanduay Ice – through a cash subscription of 1.8 billion shares at P1 per share.

Also, through a cash subscription of 1.7 billion shares at P1 par value, the holding company will also acquire 83 percent of Fortune Tobacco, which controls almost 50 percent of the Philippine tobacco industry.

About 98.1 percent of Tan’s holdings in Eton Properties were transferred to Tanduay Holdings after the holding firm bought 100 percent of the capital stocks in Paramount Landequities Inc. and Saturn Holdings. Inc. — MCJ/VS, GMA News